1940 (4) TMI 27 - HC - Income Tax

Certified Income-Tax Docs Admissible as Evidence: Full Bench Decision

Rama Rao Versus Venkaramayya

Rama Rao Versus Venkaramayya - [1940] 8 ITR 450 (MAD.) Issues Involved:1. Admissibility of certified copies of income-tax documents as evidence.2. Determination of whether income-tax returns and supporting statements are public documents under Section 74 of the Indian Evidence Act.3. Interpretation and application of Section 54 of the Indian Income-tax Act.Issue-wise Detailed Analysis:1. Admissibility of Certified Copies of Income-tax Documents as Evidence:The core issue revolves around whether certified copies of income-tax documents such as profit and loss statements and income statements can be admitted as evidence. The Court examined the provisions of the Indian Evidence Act, particularly Sections 65(e) and 74, to determine if these documents qualify as public documents, which would make certified copies admissible as secondary evidence.The Court concluded that if these documents are public documents, certified copies are admissible under Section 65(e) of the Evidence Act. The judgment emphasized that the submission of the return constitutes the fulfilment of a requirement by the Income-tax Officer, making it a document he has caused to be prepared. Therefore, such documents should be considered part of the record of the act of the Income-tax Officer, thus qualifying as public documents.2. Determination of Whether Income-tax Returns and Supporting Statements are Public Documents:The Court addressed whether income-tax returns and supporting statements filed by an assessee are public documents under Section 74 of the Evidence Act. The Court noted that Section 74 includes documents forming the acts or records of the acts of public officers, including those of the Income-tax Officer.The Court cited previous judgments, including Venkataramana v. Varahalu and Devidutt v. Shriram Narayandoss, to support the view that documents like income-tax returns, which are part of the assessment process, should be considered public documents. The Court reasoned that these documents are integral to the assessment process and are prepared at the behest of the Income-tax Officer, thus forming part of the record of the act of assessment.3. Interpretation and Application of Section 54 of the Indian Income-tax Act:Section 54 of the Indian Income-tax Act was scrutinized to understand its implications on the admissibility of income-tax documents. The Court clarified that while Section 54 prohibits the disclosure of particulars contained in income-tax documents by a public servant, it does not prevent the assessee from using certified copies of these documents as evidence.The Court emphasized that Section 54 aims to maintain confidentiality and prevent unauthorized disclosure to third parties, but it does not restrict the assessee from obtaining and using copies for their own purposes. The Court referred to departmental instructions that allow assessees to inspect and receive copies of their returns, reinforcing that there is no statutory prohibition against the admissibility of such documents in evidence.Conclusion:The Full Bench concluded that certified copies of income-tax returns and supporting statements are admissible as evidence. These documents are considered public documents under Section 74 of the Evidence Act, and Section 54 of the Indian Income-tax Act does not preclude their admissibility when used by the assessee. The appeals were dismissed with costs, affirming the admissibility of the certified copies and their relevance in corroborating the plaintiff's evidence and rebutting the defendant's contention of fabrication.